Final expense insurance is a type of whole life insurance designed to cover medical bills and funeral expenses when you pass away. A final expense policy is also known as burial or funeral insurance and is popular with seniors.
Final Expense Life Insurance For Seniors
This type of insurance is popular with seniors due to its affordable price, smaller benefit amounts, and emphasis on covering funeral costs.
Traditional life insurance policies such as term insurance are primarily considered to restore any income lost when a loved one passes away. These policies are most important to families during the earlier years when we are working, paying a mortgage, making car payments, and raising our kids.
Once we have retired, paid off the mortgage, and the kids are out of the house, traditional life insurance policies are not needed as much. What we need is a way to pay for any expenses we leave behind when we pass.
According to the National Funeral Directors Association (NFDA), the median cost of a funeral can be approximately $9,000 or more. With no way to pay for these expenses, surviving loved ones often experience a financial burden during a time of intense grief.
Many of us have experienced the death of a loved one and remember how stressful it was to juggle the grief, the funeral planning, and the financial obligations that were there. It’s an unbearable feeling thinking of how our spouse or children are going to go through the same experience.
So how can final expense life insurance help? What can we do to protect our families from this financial burden? How can we make sure they aren’t left with a pile of bills when we pass?
Burial insurance for seniors is a smart and compassionate insurance solution for seniors looking to protect their loved ones from rising funeral costs. It’s typically easy to qualify because it’s issued based on answers to health questions. In many cases, you don’t need to take a medical exam.
How Much Does Final Expense Insurance Cost?
The average final expense policy costs between $30-$70 a month and depends on your age, sex, health, amount of coverage, and the life insurance company you choose. If you have significant health conditions or are over the age of 70, your premium will probably be higher and may cost between $70-$120 a month (though it may be less).
Younger applicants who are in good health may qualify for rates in the $20-$50 range. Remember, a cheaper rate usually means fewer features and benefits for surviving loved ones. A few extra dollars a month could make a big difference in the support your family receives when you’re gone.
Cost is often the number 1 factor people focus on but it’s not the most important factor. Instead of focusing on how much the policy is going to cost, look at how many expenses will be left behind and how much they’ll cost your family. Common expenses include medical bills, credit card debt, and funeral costs. We’ll cover each of these costs below.
